Gasoline

Hyundai Pays $41.2M to Resolve Fuel Ratings Case

October 28, 2016
• by Staff

Photo of 2013 Accent courtesy of Hyundai.

Hyundai Motor has agreed to pay $41.2 million to settle consumer protection claims brought by 33 states following the automaker's 2012 restatement of fuel economy ratings on one quarter of their 2011 and 2012 model-year vehicles, the automaker announced.

The automaker had lowered the fuel economy ratings of its vehicles by 1 to 2 miles per gallon on Hyundai and Kia models.

The payment will end litigation brought by state attorneys general and the District of Columbia by settling claims and covering the states' investigative costs. The settlement contains no admissions of wrongdoing, according to Hyundai.

"Even with our adjusted ratings, we are encouraged that Hyundai continues to lead the automotive industry in fuel efficiency and environmental performance," said David Zuchowski, president and CEO of Hyundai Motor America.

Hyundai and Kia also agreed to pay a $100 million civil penalty to settle a claim from the U.S. Department of Justice and California Air Resources Board in 2014 and agreed to forfeit 4.75 million greenhouse gas credits woth $200 million.

According to the EPA Fuel Economy Trends Report, Hyundai's adjusted fuel efficiency for the affected model year vehicles is 27.2 mpg for 2011, 28.3 mpg for 2012 and 29.1 mpg for 2013.

The average fuel economy of new vehicles sold in the U.S. in December fell to 25 mpg — down 0.2 mpg from a revised November value, according to Brandon Schoettle and Michael Sivak, researchers from the University of Michigan's Transportation Research Institute (UMTRI).

The national average price of unleaded gasoline jumped 5 cents to $2.49 per gallon in the first week of 2018 and has reached a level not seen since 2014 during the week that starts the new year, according to AAA.

China is setting a deadline for automakers to end the sale of fossil-fuel powered vehicles as the country looks to reduce oil consumption and pollution and push for the development of electric vehicles. Regulators are working on a timetable for the ban.

The average national price of gasoline remained at $2.29 per gallon for the week ending March 27 amid discussion by the Organization of the Petroleum Exporting Countries (OPEC) to extend a production cut by another six months.